• bitcoinBitcoin$17,012.610.49%
  • ethereumEthereum$1,259.49-0.60%
  • elrond-erd-2MultiversX (Elrond)$43.29-0.51%

JPMorgan Sent Its Private Clients a Primer on Crypto

It has been revealed that JPMorgan has sent to its private banking clients a report that aims to educate them regarding the risks and opportunities that come with investing in crypto.

The report was created in February 2021 and was shared with the members of JPMorgan Private Bank, which calls for a balance of at least $10 million so that you can open an account.

The co-president of JPMorgan, Daniel Pinto, declared in February that “demand [from clients for crypto services] isn’t there yet,” but that there “will be […] at some point.”

The report explains how Bitcoin can be valued by taking into consideration three different metrics: the number of users, the value of gold, and the global money supply.

According to CoinDesk.com:

“1. If applying a version of Metcalfe’s law – that bitcoin’s value is proportional to the square of the number of users – it would be worth $21,667.

2. If applying the current value of gold to the max supply of 21 million bitcoin, it would be valued at $540,814.

3. Whereas applying the global value of money to bitcoin’s max supply would place the crypto’s valuation at $1.9 million.”

The report tried to play down the comparison between gold and bitcoin, despite the fact that the two of them are compared fairly often. The report mentions that bitcoin has diversifying properties, but its “volatility characteristics and correlation profile refute the comparison to the traditional safe-haven asset.”

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